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Shareholders, including several US state investment managers, have asked the company's board of directors to radically change its governance to strengthen the monitoring of CEO Elon Musk.
In a letter sent Thursday to three Tesla directors, shareholders said Tesla's board of directors should create a plan to update the number of its members and set a timetable for the departure of certain directors, among other requests. . The letter also stated that the board of directors was to permanently separate the functions of chairman and chief executive, two positions long held by Mr. Musk.
The actions sought would go beyond those required in the September agreement between Tesla and the Securities and Exchange Commission to settle allegations that Mr. Musk misled investors by tweeting them that the builder automobile had funds to go private. The settlement required Mr. Musk and Tesla to each pay $ 20 million, to retire as chairman of the board for three years, and for Tesla to add two new independent directors and to establish a communications oversight system for Mr. Musk.
A spokesman for Tesla declined to comment on Thursday's letter.
The letter was sent by CtW Investment Group, a union-affiliated fund, with pension fund representatives in New York, New York, Connecticut, Oregon and California. The group, which has collectively said it would oversee $ 774 billion in assets, also called on the Tesla board to adopt proxy voting rights to give long-term shareholders the power to vote. appoint their own directors.
The letter stated that the Nomination and Governance Committee of the Tesla Board of Directors should develop a plan for the reorganization of the Board members, with schedules for the departure of several directors close to Mr. Musk. , including his brother, Kimbal Musk, and Antonio Gracias, founder of Valor Equity. Partners and investor in several musk companies over many years. The letter also called for the immediate removal of Steve Jurvetson, a long-standing venture capital investor and associate of Mr. Musk, who had been on leave from Tesla's board of directors since last year.
"While meeting the technical definition of independence, five of the eight current non-executive directors have professional or personal connections with Mr. Musk who, in light of recent events, appear to have compromised their ability to exercise an independent judgment, "said investors. says in the letter. "Tesla's board needs directors who go beyond the technical definition of" independence "and who respect the spirit of the term."
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